In the United States, investing in options is quite common since most brokers offer such products. It is also gaining traction in Europe: increased financial literacy and interest in exploring other investment options besides stocks and ETFs.
Still, European retail investors face particular challenges:
- A limited number of platforms: Unlike the US, where options trading platforms are abundant, European traders have fewer choices. Most local brokers don’t offer robust options trading tools.
- Regulatory differences: Financial regulations in Europe vary from country to country, and the European Securities and Markets Authority (ESMA) imposes stricter rules on leverage and investor protection.
- Access to US markets: Most options trading volume happens in US markets like the CBOE or NASDAQ. European traders often need to open accounts with international brokers to access these markets, which can involve higher fees, tax complexity, and additional compliance steps.
This article will show the best European broker for options trading to help decide which one is better for you!
Top 4 European brokers for options
- Interactive Brokers: The best options broker overall. Low fees for US options (from $0.15 per contract with a minimum of $1 per trade); Options are also available for European and Australian stocks.
- Saxo Bank: A Danish online broker offering options from 20+ exchanges across the US, Europe, and Asia-Pacific. From $/€ 0.75 per contract.
- Freedom24: It only gives you access to US stocks from $0.65 per contract
- DEGIRO: It gives you access to options in several markets, including the Euronext Derivatives Amsterdam. From €0.75 per contract + a €5 monthly connectivity fee (only for US options).
Regulation and safety
Before deeply diving into each broker, it is essential to mention that all the options brokers are regulated in Europe!
To demonstrate this, let’s use Interactive Brokers as an example. As a European, when you open an account at Interactive Brokers, you do it through the subsidiary “Interactive Brokers Ireland Limited”, regulated by the Central Bank of Ireland (CBI, reference number C423427):
As a result, you are protected by the Irish Investor Compensation Scheme (ICS).
The ICS is intended to help private individuals, such as people like you and me. Compensation under the ICS is limited to 90% of the amount lost, subject to a maximum of €20,000 to each investor. The coverage provides protection against the failure of the investment firm, not against loss of market value of financial products.
In the following table, we include the protection associated with each broker only considering the perspective of a European investor (a non-European investor may open his/her account through another subsidiary under a different jurisdiction):
Detailed analysis of each broker
Interactive Brokers
- Options commission: From $0.15 per contract (min. $1 per order)
- Options markets: Americas, EMEA, APAC
- Minimum deposit: €0
- FX fee: 0.002% (min. of $2)
Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker that has surpassed significant financial crises, showing resilience and a rigorous risk management process.
Options Trading is offered on 30+ market centres with commissions starting from $0.15 for US option contracts. The trading platform presents advanced options trading tools such as Rollover Options Tool, OptionTrader and Option Analytics. You can view your positions, market data, option chains and customize your trading strategies using a Strategy Builder. The Interactive Brokers Traders’ Academy might be excellent for deepening your knowledge of options!
Interactive Brokers owns IBKR Global Trader, a mobile app geared toward newcomers to the investment industry that allows stock, options, and ETF trading. This product offers automatic currency conversions, fractional shares, and a demo version.
Don’t know how to buy options at Interactive Brokers? This video explains it very clearly:
Saxo Bank
- Options commission: From $0.75 per contract
- Options markets: US, Europe, and Asia-Pacific
- Minimum deposit: €0
- FX fee: 0.25%
Founded in 1992 and headquartered in Copenhagen, Saxo Bank is a Danish investment bank and online broker regulated by multiple top-tier authorities, including the Danish FSA and the UK’s FCA. Known for its strong presence across Europe and Asia, Saxo offers a comprehensive multi-asset platform with access to global markets, including a solid suite of options trading capabilities.
Saxo Bank provides access to listed options on major US, Europe, and Asia exchanges. Its proprietary platform, SaxoTraderGO, is well-suited for both beginner and advanced options traders. The platform includes tools for analyzing option chains, building custom strategies, and monitoring Greeks and implied volatility in real time. Saxo also offers in-depth market research and educational resources to support informed trading decisions.
For those new to trading or looking for a more mobile-focused experience, SaxoInvestor is their beginner-friendly app that allows for trading in a simplified environment, though it is more geared towards long-term investing rather than advanced options strategies.
Saxo operates on a tiered account structure (Classic, Platinum, and VIP), with lower fees and tighter spreads available for higher deposit levels or active traders.
Freedom24
- Options commission: From $0.65 per contract
- Options markets: US only
- Minimum deposit: €0
- FX fee: 0.002% (EUR/USD)
Founded in 2008, Freedom24 (a brand of NASDAQ-listed Freedom Holding Corp. broker) offers to its 500,000+ worldwide clients 40,000+ stocks, 1,500+ ETFs, 1,000+ US Stock Options, and 147,000+ bonds on the largest exchanges in Europe, Asia, and the US.
Freedom24 trading platform can be accessed through PC and mobile App versions. Both trading platforms are adequate for executing trades. They are well-designed and intuitive but lack customization options. You are provided with additional features such as “InvestIdeas” and “News”.
Freedom24 offers options in several markets and currencies. US stock options have a commission per trade of $0.65 (“Smart in EUR” pricing plan).
As a plus, with the Long-Terms funds placement*, you can earn a high fixed return on your cash: up to 4.30% p.a. for EUR balance and up to 7.14% p.a. for USD, as of March 2025.
Want to know more about Freedom24? Check our Freedom24 Review.
*This product is an investment in OTC swaps, and may not be appropriate for every investor. This product is not a banking service and is not related to a bank deposit or a bank account. The ability to provide access to a particular financial instrument is subject to an appropriateness test.
DEGIRO
- Options commission: From €0.75 per contract + a €5 monthly connectivity fee (only for US options).
- Options markets: US and Europe
- Minimum deposit: €0
- FX fee: 0.25%
Founded in 2013, DEGIRO is a low-cost brokerage firm that has become very popular due to its low rates! With over 3 million users, the innovative platform has become widely known for its “do-it-yourself” philosophy. You have everything at your disposal to start investing on your own. It offers a wide range of financial assets to trade, including stocks, ETFs, bonds, options, futures contracts, warrants, investment funds, and some leveraged products.
DEGIRO allows you to trade options in the US (CBOE, CME, NYMEX…) and European markets (Eurex, Euronext exchanges, IDEM…). The commissions to do so are pretty high. You will pay €/£0.75 per contract in addition to a monthly connectivity fee of €/£5. Besides, you will be charged €/£1 per contract when exercising an option.
The trading platform is not sophisticated for options trading, meaning no advanced tools to see the complete picture of the dynamics affecting options pricing. In other words, the platform is only suitable for execution (buy or sell).
Bottom line
Options trading is steadily gaining ground in Europe, but it still comes with challenges, like the limited number of platforms. Fortunately, there are now solid options for European investors looking to trade options, whether you're after low fees, diverse market access, or user-friendly platforms.
Interactive Brokers stands out as the best all-around choice, especially for those wanting access to US markets and advanced tools. Saxo Bank is a strong European alternative with a professional-grade platform and broad international coverage. Freedom24 offers simple access to US options at competitive rates, while DEGIRO appeals to low-cost, DIY investors despite its limited options tools.
All in all, the best broker for you depends on your experience level, trading style, and which markets you want to access.
FAQs
Can you trade US options in Europe?
Yes, you can trade US options from Europe. The offer only depends on the broker you use.
Is options trading legal in the EU?
Yes, options trading is legal in the European Union.
Are options taxed differently?
Yes, options are often taxed differently from regular stocks. The exact treatment depends on your country of residence, but in most European countries: Gains from options trading are subject to capital gains tax or a similar investment income tax. Options premiums received (e.g., from selling covered calls) may be taxed as income. Losses may be deductible against other capital gains, depending on local laws.
It’s important to keep detailed records of your trades and consult a local tax advisor. Brokers like IBKR and DEGIRO provide tax reporting tools to help you stay compliant.
In Portugal, for instance, capital gains from derivatives are taxed at 28%, but losses may be carried forward.
